How to Build a Jewelry Portfolio

As an asset class, luxury baubles have never been hotter. Here’s what you need to know to get in on the gem game*

- Kristen Shirley

Jewelry collecting has been a diversion for hundreds of years. J.P. Morgan was a well-known gem collec-tor during his lifetime—Tiffany & Co. even named a newly discovered stone, morganite, in his honor. Indian maharajahs displayed their wealth in opulent jewelry suites featuring hundreds, if not thousands, of carats. Visit any museum in Europe, and you’ll find a dazzling parade of royal crown jewels that kings and queens collected.

Because nothing holds value quite like rare, precious jewels, collecting them can be a rather sound investment. Price makes little difference: In 2003 a Belperron amethyst cuff sold for $28,680; in 2021 that same cuff went for $87,500. In 2012 a 6.7-carat Kashmir sapphire auctioned for $206,500; last year a similarly sized one was bought for $550,000.

Unlike when buying stocks or crypto, you can actually wear and enjoy these assets, so the adage to buy what you love applies here. “I liken managing a collection of jewelry to managing a portfolio of stocks,” says Tiina Smith, a vintage dealer in Boston, who spent years working on Wall Street before changing careers and opening a boutique. “It requires rigorous analysis, making sure you know what you’re about to buy, trying to buy the best in class.”

As with stocks, education is the way to begin. There are many excellent books on the jewelry market, but start with Understanding Jewellery, the industry bible by two former Sotheby’s jewelry executives, David Bennett and Daniela Mascetti. You can also learn by taking online courses, visiting museum exhibitions, or attending previews at auction houses.